Monday, May 18, 2009

Fiat, Guangzhou Auto Plan 4.3 Billion Yuan China Car Venture

Fiat SpA plans to form a 4.3 billion yuan ($630 million) carmaking venture in China with Guangzhou Automobile Group Co., ending a two-year hiatus in Asia's biggest auto market.

The two companies have applied to build a car factory in Guangzhou city, Guangdong, according to a statement posted on the Web site of China's Ministry of Environmental Protection. The plant will be able to make 140,000 cars a year, the South China Morning Post said earlier today.

Fiat, Italy's better automaker, intends to resume accomplishment in China as the nation's bread-and-butter advance helps it abstain the affliction of the all-around slump in auto sales. The move is additionally in band with the company's advance to become a all-around carmaker, which includes an acceding to booty a pale in Chrysler LLC and a bid to shop for General Motors Corp.'s European unit, Opel.

Zheng Xiaoli, Fiat's Shanghai-based spokeswoman, beneath to comment. The carmaker currently shares technology with Guangzhou Auto, the country's best assisting automaker. It exited a adventure with Nanjing Automobile Group Corp. in 2007 afterwards its accomplice was bought by SAIC Motor Corp.

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